DEL MAR, Calif., July 2, 2004 (PRIMEZONE) -- Pacificap Entertainment Holdings, Inc. (OTCBB:PFEH) is pleased to announce that it recently entered into an agreement with four accredited investors, pursuant to which the investors will provide Pacificap up to $2 million principal amount in connection with the sale of 10% Senior Secured Convertible Redeemable Notes. The investors also will receive one Warrant for every dollar invested. Pacificap received gross proceeds of $700,000 under this facility and will receive a further $600,000 of additional gross proceeds upon the filing of a registration statement covering the common stock underlying the Notes and Warrants and an additional $700,000 upon effectiveness of such registration statement.
In addition, the Company has terminated its agreement with NBA star Baron Davis and his company, Too Easy Entertainment, Inc., which was entered into in March 2004.
Pacificap previously entered into a film financing agreement with FinanceArt, LLC, whereby FinanceArt and Pacificap agreed to co-finance both studio and independent films. A studio fund will be utilized for the co-production of films with major film studios and an independent fund will be utilized for the co-production of films with independent producers. FinanceArt will oversee and control the financing of all projects generated by the alliance. Production and financing fees generated for Pacificap from each film financed by the alliance are not contingent on the films' box office success. Financing for these funds comes from high net worth individuals, and are not considered revenue to the Company. Each project must be independently approved, and financing is made available upon the execution of a film contract that meets the funds' requirements.
Pacificap has also entered into a co-financing agreement with Outlook Films for the production of films by Outlook. Outlook Films, an independent film finance and production company based in Beverly Hills, California, was founded in 2003 by Adam Krentzman and Francois Lesterlin. Under this agreement, Pacificap would finance 50% of the total film costs and Outlook Films, through the studio, would provide the other 50% and the movie scripts.
Pacificap Entertainment Holdings, Inc. is a film finance and media company located in Beverly Hills, CA. The Company's revenue is derived from both financing of filmed entertainment and the production of live broadcast.
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, the ability of the Company to complete the planned bridge financing, market conditions, the general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.